P/E ratio (price to earnings)
The P/E ratio is the share price divided by the earnings per share (EPS) of the last 12 months. It tells you how many rupees the market is paying for each rupee the company earned.
Example: a share at ₹500 with EPS of ₹25 has a P/E of 20.
- A higher P/E usually means the market expects faster growth, or that earnings were unusually low last year.
- A lower P/E can mean slower expected growth, more risk, or an unusually good year.
- Compare P/E within the same sector: banks, IT and FMCG companies normally trade at very different levels.
- A loss-making company has no meaningful P/E.
P/E on its own does not say whether a share is cheap or expensive; look at growth, debt and the quality of earnings too.
Where to see it on NSE Scanner
Every stock page shows the P/E, and comparison pages put two companies' P/E side by side.
EPS (earnings per share) · ROE (return on equity) · ROCE (return on capital employed) · Promoter pledge · Bulk deals and block deals